Australia Property Market

The Australia property market experienced an unexpected upswing in 2023, with property prices rising by 8.1 percent nationally. Despite the rise in interest rates, only two states and territories, Hobart and Darwin, recorded a drop in house values. The largest increases were seen in Perth, Brisbane, and Sydney, with Perth experiencing a significant uplift of 15.2 percent, followed by Brisbane at 13.1 percent and Sydney at 11.1 percent. Regional markets also saw an increase of 4.4 percent in property values.

Despite the mixed results across different regions, national dwelling values remained significantly higher than pre-COVID-19 levels, with a 31.3 percent increase. This indicates a strong recovery in the property market.

Australian Capital Territory

In the Australian Capital Territory, Canberra’s annual property values increased by 0.5 percent. However, housing values in the ACT are still 6.3 percent below the record highs reached in May 2022. Some of the most affordable suburbs for houses in Canberra include Phillip with a median value of $587,806, and for units, Hawker with a median value of $413,328.

New South Wales

Sydney experienced a significant increase in property values, with an 11.1 percent rise in 2023. However, housing values in Sydney had their most recent peak in January 2022, while regional New South Wales reached its peak in May 2022. The most affordable suburbs for houses in Greater Sydney include Tregear with a median value of $656,329, and for units, Carramar with a median value of $413,810.

Northern Territory

Darwin saw a slight decrease in property values, with a 0.1 percent drop in 2023. However, it remains the cheapest capital city to buy a home, with an average value of $496,000. The most affordable suburbs for houses in Greater Darwin include Gray with a median value of $359,369, and for units, Bakewell with a median value of $272,038.

Queensland

Brisbane experienced a steady increase in dwelling values, with a 13.1 percent rise in 2023. Regional Queensland also saw an 8.7 percent increase in property values last year. Some of the most affordable suburbs for houses in Greater Brisbane include Russell Island with a median value of $384,002, and for units, Kooralbyn with a median value of $259,091.

South Australia

In Adelaide, housing values remain significantly above pre-COVID-19 levels, with a 52.3 percent increase. The city also experienced a further increase of 8.8 percent in property values in 2023. Regional South Australia stood out for its growth conditions, with property values up 9.4 percent last year. Some of the most affordable suburbs for houses in Greater Adelaide include Elizabeth North with a median value of $363,040, and for units, Salisbury with a median value of $292,894.

Tasmania

Hobart recorded the largest drop in property values across the capital cities, with a 0.8 percent decrease in 2023. Regional Tasmania also saw a slight decline of 0.1 percent. Some of the most affordable suburbs for houses in Greater Hobart include Risdon Vale with a median value of $439,456, and for units, Clarendon Vale with a median value of $463,162.

Victoria

Melbourne experienced a slower pace of growth in property values, with a 3.5 percent increase in 2023. This is in stark contrast to the 8.1 percent decline in 2022. Regional Victoria also saw a decrease of 1.6 percent in property values last year. Some of the most affordable suburbs for houses in Greater Melbourne include Melton with a median value of $468,925, and for units, Carlton with a median value of $353,375.

Western Australia

Perth enjoyed the most significant increase in property values, with a surge of 15.2 percent in 2023. Adelaide and Brisbane also experienced growth, with housing affordability challenges being less pressing in these cities. Regional property prices in Western Australia also recorded an increase of 8.4 percent. Some of the most affordable suburbs for houses in Greater Perth include Kwinana Town Centre with a median value of $377,497, and for units, Furnissdale with a median value of $159,912.

Biggest Falls in 2023

Suburbs in Greater Hobart dominated the list for the largest falls in property values across the capital cities in 2023. North Hobart and Taroona recorded the largest falls in value for houses, with decreases of over 13 percent. Wulagi and Gray in Greater Darwin followed closely behind, with falls of 11.1 percent and 10.3 percent respectively.

Outlook for 2024

While it is impossible to predict the future with certainty, the outlook for the Australia property market in 2024 depends on various factors such as population growth, supply and demand, and interest rates. According to SQM research director Louis Christopher, average city prices are expected to range from -1 to +3 percent nationally in 2024. Brisbane and Perth are likely to be the only capital cities to record meaningful rates of price growth, driven by a recovering Chinese economy and strong demand for base commodities. On the other hand, Sydney, Melbourne, Canberra, and Hobart may experience price declines. However, market conditions could strengthen towards the end of the year if there is a loosening in monetary policy.

In conclusion, the Australia property market experienced a significant upswing in 2023, with property prices rising nationally. Despite some regional variations, dwelling values remained significantly higher than pre-COVID-19 levels. The outlook for 2024 suggests a potential slowdown in the pace of growth, with some cities expected to record price declines. However, market conditions could change later in the year based on various economic factors.